Cork Chamber has expressed disappointment at the decision of Cork City Council to cut the Local Property Tax, describing it as likely to prove " a short sighted decision".
The 31 member council voted to cut the LPT despite the advice of Cork City manager, Ann Doherty, who warned that a 15 per cent cut would cost the council €1.7 million each year.
Sinn Féin and the Anti-Austerity Alliance had been seeking to cut the LPT by the maximum permitted 15 per cent but were prevented from formally proposing a motion for the full 15 per cent cut.
Instead the council opted to support a compromise motion from Fianna Fáil seeking a 10 per cent cut, which was supported by Fine Gael and passed by 14 votes to 11 with two abstentions.
However, Cork Chamber today criticised the move, saying that it will result in a fall in revenue to Cork City Council in the region of €600,000.
Cork Chamber president Gillian Keating said it was incumbent on Cork City Council to ensure it was able to allocate funds for vital services and drive economic growth and jobs.
“Last night’s decision to create a shortfall of €600,000 from the city’s budget may now have an adverse effect of the local authorities ability to deliver those vital services,” she said.
Ms Keating said commercial rate payers are already contributed more than 40 per cent of the city council's income annually and businesses could be expected to make up the shortfall.
“It is also critical that we do not see a fall in the level of services provided by the City Council to facilitate economic growth and job creation,” she said.
“We will continue to engage with all those involved to with a view to ensuring that there is neither a fall off in services nor a demand on business to make-up the shortfall.”
